2018 (5) TMI 2008 - ITAT MUMBAI

MAT Computation u/s 115JB - TUF subsidy - HELD THAT:- The case of Krishi Rasayan Exports Pvt. Ltd. vs. ACIT (2017 (3) TMI 1051 - ITAT KOLKATA is on the similar interest subsidy which was required to be excluded from Book profit. We accordingly direct AO to exclude the TUF subsidy while computing book profit u/s.115JB.

Disallowance u/s.14A - HELD THAT:- From the Balance Sheet and the annexures as submitted before lower authorities, it can be seen that a major portion of the investment made by the assessee are in group concerns and are strategic in nature. These investment in group concern are not for the purpose of earning any dividend income. Strategic investment made in group concerns should not be considered for calculating the action u/s. 14A.

As per the documents placed on record, sufficient interest free funds were available with the assessee company and therefore, no disallowance under Rule 8D(2)(ii) be made of interest expenditure. The same is also clear from the Balance Sheet and the relevant annexures placed on record. Further, in respect of own funds, presumption has to be made that the investment made are from own funds. The Honble Jurisdictional High Court in HDFC Bank Ltds case [2014 (8) TMI 119 - BOMBAY HIGH COURT]. has upheld the above proposition. Respectfully following the jurisdictional High Court judgment we direct AO to delete the disallowance of interest. Disallowance under Rule 8D(2)(iii) is restored to AO to compute in accordance with the latest decision of Supreme Court in the case of Maxoop Investment [2018 (3) TMI 805 - SUPREME COURT]